AUD/CAD about to break out from triangle
If looking at AUD/CAD’s movement during the past two weeks, it is apparent that the rate has entered a consolidation period with diminishing trading range. This has resulted in the formation of a symmetrical triangle.
The Aussie was testing the upper channel boundary prior to plunging down to its bottom line during the first hour of this session. As the rate was not trading in a distinctive up– or down-move before forming this pattern, it is yet unknown to which direction the breakout is to take place. However, it is more likely to happen southwards during the upcoming hours.
The nearest support is set by the 23.6% Fibonacci retracement at 0.9750.
After reaching this area, the rate could reverse to the upside, approaching a resistance area formed by the 55-, 100– and 200-hour SMAs and the monthly PP in the 0.9780/0.9790 territory.
The Aussie was testing the upper channel boundary prior to plunging down to its bottom line during the first hour of this session. As the rate was not trading in a distinctive up– or down-move before forming this pattern, it is yet unknown to which direction the breakout is to take place. However, it is more likely to happen southwards during the upcoming hours.
The nearest support is set by the 23.6% Fibonacci retracement at 0.9750.
After reaching this area, the rate could reverse to the upside, approaching a resistance area formed by the 55-, 100– and 200-hour SMAs and the monthly PP in the 0.9780/0.9790 territory.
